U.S. labor data research challenges misconceptions about JOLTS job openings

Traders Union
All News
Financial News
Labor data challenges JOLTS myths

Highlights

JOLTS job openings peaked at 12.3 million in March 2022, rebounding from COVID-19 lows due to higher labor demand and remote hiring.
BLS research rejects claims that national JOLTS data is inflated by counting errors or overreporting, attributing increases to genuine labor market shifts.
JOLTS methodology relies on direct establishment surveys, not online job listings, with strict definitions and respondent follow-ups to ensure data accuracy.

Research findings on pandemic-era job openings

As reported by the U.S. Bureau of Labor Statistics, the Job Openings and Labor Turnover Survey, or JOLTS, reaches a series high of 12.3 million job openings in March 2022 after steep declines in March and April 2020 at the onset of the COVID-19 pandemic. The research says the subsequent surge is driven mainly by economic factors, including stronger labor demand, fewer jobseekers, and a rise in efforts by firms to hire remote workers.

The article addresses claims that the jump in openings is inflated by noneconomic processing issues or by employers effectively counting the same role more than once across locations. BLS says its national JOLTS data and related research do not support the view that the increase is caused by data collection errors or respondent overreporting, and instead point to genuine changes in the labor market over that period.

How JOLTS measures openings

A central misconception examined in the research is that JOLTS relies on online job listings and is therefore vulnerable to overcounting in the same way as some internet-based vacancy measures. BLS says JOLTS is an establishment-based survey that collects information directly from sampled establishments, rather than scraping or compiling postings from online job boards.

Under the survey's methodology, a position counts as open only if a specific job exists, work is available, the job could start within 30 days, and the employer is actively recruiting from outside the establishment location with the opening. The agency also says JOLTS uses staff training and respondent support to maintain reporting accuracy, including telephone contact for new participants and follow-up checks to confirm that establishments continue to apply the survey's definitions and criteria correctly.

In our earlier coverage of the BLS benchmark revision to U.S. payrolls, we noted that the government’s preliminary estimate suggested job growth in the 12 months through March was 79,000 lower than previously reported. We also highlighted that the adjustment added to evidence of a cooling labor market, alongside broader pressures on hiring such as technology adoption and a shrinking labor pool.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.